STATE OF THE BULGARIAN INVESTMENT ECOSYSTEM

EVGENY ANGELOV | BVCA CHAIRMAN

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96% internet users with speed higher than 4 mbps

#1 business process outsourcingdestination in Europe and #3 in the world

#3 in the world for certified it professionals per capita

growing exports of ICT services 4x& electrical machinery 5x since 2008

8 out of 10 cars produced in Europe with components from Bulgaria

R&D

Investment highlights

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Corporate knowledge-intensive investments

Coca-Cola opened its second largest IT development center in Sofia. Coca-Cola Tech Innovation Lab is focused on artificial intelligence, cyber security and data analysis

Siemens to open an engineering hub to develop and implement manufacturing and automation systems, software and solutions for industrial robots

FT Core, which supports all the platforms of the group, analyses data and trends, to move its entire technology office in Bulgaria

2nd largest R&D center is located in Bulgaria with primary focus on payment infrastructure

More than 700 engineers, of which half are programmers, are developing automotive electronics and software for Mercedes- Benz in Visteon’s facility in Sofia

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The innovation ecosystem is thriving

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VC activity

SOFIA IS AMONG THE 10 TOP CITIES AROUND

THE WORLD TO LAUNCH YOUR STARTUP

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a regional success story

>350Mpublic revolving

funding

x2.6private funding

multiplier

>875Mtotal financing

mobilised

>10,000 SMEs

financed

>25,550 jobs

supported

219 start-ups& growth stage companies

funded

SME funding for innovation and growth over 5 years…

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pre-seed seed venture growth€

1M

+5

01

-1M

101-500K

25

-10

0K

1

2

3

4

5

Bulgarian-based equity funds

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Investment activity by stage (publicly funded funds)

€ invested and # of companies funded # of companies by stage

9%

20

73

138

200210 215 219

0

50

100

150

200

250

0

10

20

30

40

50

60

70

80

90

2012 2013 2014 2015 2016 2017 2018

€ Milli

on

Seed Startup Expansion # of Companies

20%

# of companies by stage

Seed

Startup

Expansion

71%

9%

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> 6000applicationsfor funding

≈100entrepreneurial

conferences & workshops

1/3of start-ups set upby non-Bulgarians

Majority of funded companies by sectors Follow-on investors from top tier firms

Since 2012…

ICT

Digital

Engineering

Med-tech

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Noteworthy exits

The US based Progress Software acquired Telerik, a leading provider of application development tools $262M

PROS Holdings Inc. acquired Vayant which develops SaaS platform for airfare search needs$35M

The global private equity firm Riverside Company together with Charles Taylor Insuretech acquired Fadata, an innovative insurance and IT solutions company

$22M

Francisco Partners, a global tech-focused PE firm, acquired a majority stake in Dynamo software, a developer of cloud CRM systems for investment management & investment portfolios

$50M

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Equity capital for innovation and growth –3x over the next 24 months

€130-150M EIF backed funds

> €110MFoF backed funds

> €90MPrivate fundraising

Local investment industry future development

2018 2020

5 x Seed 2 x Venture Capital 1 x Mezzanine 1 x Tech Transfer

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Focal point of private investors, venture capital funds and the entrepreneurial community in Bulgaria

Popularise the role of private investment as a reliable and sustainable source of funding

Ensure sound public policy that encourages a favourable investment environment

Engage the Bulgarian diaspora

BVCA at a glance

Stay connected

www.bvca.bg

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